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[[Category:Hotel info]]__NOTOC__ __NOEDITSECTION__
[[Category:Info pages]] {{Template:New Skin Box}}
''→ Go! [[:Category:Hotel info]]'' <br>
''→ Go! [[Introduction to Hotel]]''</div><br>
{{Running competition}}
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== Size of the market ==__NOEDITSECTION__
== Size of the market ==
There is a kind of [[overcapacity]] in the market which makes it hard to reach [[occupancy rate]]s above 80%. But for any
There is [[overcapacity]] in the hotel market, which makes it hard to reach [[occupancy rate]]s above 60% during weekdays. It is not clear whether this is due to demand or supply side, but for any individual hotel there is enough market demand to get the hotel profitably occupied during both weekdays and weekends.<br>
individual hotel there is enough demand in the market to get the hotel well-occupied.
We distinguish two different targetgroups, customers and markets
* [[leisure targetgroup|leisure market and mainly leisure guests]]
* [[business targetgroup|business market and mainly business or corporate guests]]
We now look at the second one.


== Sales prices ==__NOEDITSECTION__
== Sales prices ==
Revenues consist of the average (sales) prices times the number of bookings.  
Weekdays account for 4 of the seven weekdays and this means (rounded up) 57% of the total of all available hotel nights (see [[occupancy rate]]). The guest are business guests. <br>
A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weeks, so 52 weeks x  
Hotel revenue comprises the average (sales) prices times the number of bookings.
100 rooms. Also check the page for information on the [[leisure targetgroup]] which will mainly be the guests for the weekends.
A maximum occupancy rate would mean that all 100 rooms are occupied during all weekdays, so 52 weeks x 100 rooms x 4 days (Monday, Tuesday, Wednesday and Thursday). So 20,800 ''rooms'' booked for one night. Check the [[leisure targetgroup|leisure targetgroup]] page for more information, which will mainly be weekend guests.  


Prices during weekdays (especially interesting for business guests) in the past were ranging from € 100 to € 140 maximum per room per night including breakfast.  
Weekdays prices in the past ranged from € 100 to € 140 maximum per room per night, including breakfast.  
* the € 100 price has been the last-minute price during the weekdays.
* the € 100 price has been the last-minute price during weekdays.
* the € 140 price has been the [http://traveltips.usatoday.com/rack-rate-hotels-107299.htmlr rack rate] price during the weekdays. The (highest) published price with nu discounts, no special deals or commissions.  
* the € 140 price has been the [https://www.xotels.com/en/glossary/rack-rate rack rate] during weekdays. The rack rate being the (highest) published price without discounts, special deals or commissions. <br>
Revenues have been calculated on the [[occupancy rate]] page, you can find the numbers in the [[operating review]].  


The business targetgroup will be the main number of guest during the [[weekdays]]: so Monday to Thursday night. The weekdays make up 3/7 of the total days when you take over the management, so rounded up to 57% of all days. <br>
== Type of customers ==
The business targetgroup will be occupied the rooms by one person only. The total available night during the weekdays is 100 rooms (calculating with) 364 days and then 4/7 considered weekdays, so rounded up 57% means a maximum of 20.748 nights a room is available on weekdays. <br>
There is no specific information on any type of guests: We do know that business people mainly stay on weekdays. The hotel has always aimed at the business marketgroups and secondly at leisure guests. The type of customers attracted so far is an average of the business targetgroups. The average room occupation during weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms. <br>
The occupancy rate has been 50% over the years so 10.374 weekdays are occupied as you take over, at an average price of ((€ 100 + € 140)/2) € 120 so € 1.244.880. This is the revenue from renting out the rooms only. There is additional revenues from food and beverage and other revenues linked to the rooms occupancy.<br>
The records show information on revenues and guest nights.
</div>


As you take over in year 0 there is a total of ten hotels, so all together the demand for weekdays rooms was 10 x 10.374 = 107.740. After all of your decisions and the decisions of your competitors this demand will never be exactly the same in the years when you run the hotel. It depends on many of your decisions. But keep a close look at this benchmark!
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== Guest nights ==
The latest available numbers on the hotel show a 50% occupancy rate during weekdays: Out of the possible 20,800 room (nights) 10,374 room (nights) are ''sold''; therefor the occupancy rate is 50%. This will bring the number of guest nights at this moment to 10,374 x 1,0 (guests per room)= 10,374 guest nights. So on average in the last recorded year 10,374 guest nights have been registered.


== Maximum in this targetgroup == __NOEDITSECTION__
== Total guest nights ==
The maximum number of hotel nights to be sold during the weekdays would be: <br>
* Weekends = 13,304 guest nights: 56% of all guest nights
364 days x 100 rooms x 57% so 20.748. At an average price of € 120 and a 100% occupancy this means a maximum of € 2.489.760. revenues on renting out the weekdays, mainly aiming at the business targetgroup. <br>
* Weekdays = 10,374 guest nights: 44% of all guest nights
As shown by experiences in the market ([http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Tourism_statistics_-_occupancy_rates_in_hotels_and_similar_establishments ]) even 50% is rather high on an average during a year. Keep that in mind! Of course the price is the other factor influencing the revenues.
* Total = 23,678 guest nights: 100%


This information gives an indication of the maximum growth. Of course, things change if you have a higher occupancy rate AND a higher sales price.<br>
== Total revenues from guests ==
So making additional costs (next to the fixed ones and the variable ones you can't avoid) this just calculated maximum gives you an indication of what you could make on extra costs which still could be earned back. Or, even better, lead to more profit.  
* Weekends = € 704,340 in revenue: 36% of total room revenue
* Weekdays = € 1,244,880 in revenue: 64% of total room revenue
* Total € 1,949,220 in revenue: 100% of total room revenue
The highest revenues are generated by the business guests.


== Type of customers ==__NOEDITSECTION__
There is no specific information on the type of customers: we do know the business people mainly book in the weekends. The hotel has always in the first place been aiming at the business targetgroups and in the second place on the leisure guests. The type of customers attracted so far are an average of the business targetgroups. The average room occupation during the weekdays (due to the business guests) is 1,0 per room. Business guests tend to have single use of rooms.


<br><hr>
''→ Go! Following the Introduction to the Hotel? Step 9/10 is the [[Operating review| Operating review page, click here]]''
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Latest revision as of 10:30, 12 October 2024

→ Go! Introduction to Hotel


Size of the market

There is overcapacity in the hotel market, which makes it hard to reach occupancy rates above 60% during weekdays. It is not clear whether this is due to demand or supply side, but for any individual hotel there is enough market demand to get the hotel profitably occupied during both weekdays and weekends.
We distinguish two different targetgroups, customers and markets

We now look at the second one.

Sales prices

Weekdays account for 4 of the seven weekdays and this means (rounded up) 57% of the total of all available hotel nights (see occupancy rate). The guest are business guests.
Hotel revenue comprises the average (sales) prices times the number of bookings. A maximum occupancy rate would mean that all 100 rooms are occupied during all weekdays, so 52 weeks x 100 rooms x 4 days (Monday, Tuesday, Wednesday and Thursday). So 20,800 rooms booked for one night. Check the leisure targetgroup page for more information, which will mainly be weekend guests.

Weekdays prices in the past ranged from € 100 to € 140 maximum per room per night, including breakfast.

  • the € 100 price has been the last-minute price during weekdays.
  • the € 140 price has been the rack rate during weekdays. The rack rate being the (highest) published price without discounts, special deals or commissions.

Revenues have been calculated on the occupancy rate page, you can find the numbers in the operating review.

Type of customers

There is no specific information on any type of guests: We do know that business people mainly stay on weekdays. The hotel has always aimed at the business marketgroups and secondly at leisure guests. The type of customers attracted so far is an average of the business targetgroups. The average room occupation during weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms.
The records show information on revenues and guest nights.


Guest nights

The latest available numbers on the hotel show a 50% occupancy rate during weekdays: Out of the possible 20,800 room (nights) 10,374 room (nights) are sold; therefor the occupancy rate is 50%. This will bring the number of guest nights at this moment to 10,374 x 1,0 (guests per room)= 10,374 guest nights. So on average in the last recorded year 10,374 guest nights have been registered.

Total guest nights

  • Weekends = 13,304 guest nights: 56% of all guest nights
  • Weekdays = 10,374 guest nights: 44% of all guest nights
  • Total = 23,678 guest nights: 100%

Total revenues from guests

  • Weekends = € 704,340 in revenue: 36% of total room revenue
  • Weekdays = € 1,244,880 in revenue: 64% of total room revenue
  • Total € 1,949,220 in revenue: 100% of total room revenue

The highest revenues are generated by the business guests.


→ Go! Following the Introduction to the Hotel? Step 9/10 is the Operating review page, click here


→ GO! Top of this page
. . . Emerald Forest Hotel offer an emerald hotel experience! Run your own hotel in this management simulation . . .


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